They say public speaking is most people's greatest fear. Right after that must be buying a used car. It can be a harrowing journey. The old stereotypes are ever-present. Predatory curbside salespeople peddling bad product. Unsuspecting buyers whose dream cars turn into lemons seconds after they leave the lot. Weird mark-ups, undetected damage, trouble with the title – these are all pitfalls that unwary drivers can fall into.
Now there's another factor to consider: flood damage.
Hurricane Harvey has done its worst, causing carnage and suffering. The automotive side to the catastrophe is that an estimated 500,000 to 600,000 flood-damaged vehicles will be write-offs, according Solera Holdings Inc., a data company based in Westlake, Texas. There have already been 100,000 claims for vehicle flood damage. It's a heavy hit for a city in which 94 per cent of the adult population drives.
Most flood-damaged vehicles are considered total losses by insurance companies. Sustained water damage causes rust and destroys computer and electrical systems. It can warp brakes and rotors and lead to airbag malfunction. Flood damage can corrode the exhaust system and can cause transmission failure. The "car plus flood equals bad news" list is endless.
Once a car is deemed ruined, it is sent to a salvage yard so any undamaged parts can be re-purposed.
Of course, where there's calamity, there's criminal opportunity. Flood fraudsters don't waste time. As soon as soggy vehicles can be dried out, they're shipped off to other parts of the country and sold – with nary a mention of their nautical past – to what used to be known as "suckers." According to the vehicle history database company Carfax, 271,404 flood-damaged cars were on American roads in 2016. Guess which state had the most? Texas, with 43,000. Car grifters hide any information connected to a vehicle's watery past. They engage in "title washing" by erasing a car's history or by leaving any alarming facts off the sheet.
Between Hurricane Harvey and Hurricane Irma, the market is bound to get "flooded" with more watery automobiles. It's possible that some of these lemons will end up in Canada. After all, flood-damaged cars made their way here after Hurricane Katrina in 2005 and Hurricane Sandy in 2012.
So, what can a consumer do?
Go to a reputable used car dealer. Established dealers play the long game. They want happy customers who come back, not fleeced marks who hold a grudge. Someone who is passing off flood-damaged cars is going for the quick kill. They're going to pressure you to buy fast. There will be some hyped-up story explaining why the car is so cheap. If you don't act now you'll lose it. There may be the inference of the transaction being a little less than legit (no tax, cash only). The best way to ensure a mark doesn't go to the police is to have them engage in criminal behaviour.
Inspect the vehicle. Look for mould and mildew. Despite the best efforts of fraudsters, flood-damaged cars often smell like the bottom of a stale pond. Check under the mats, under the car, look for moisture in the headlights and in the instrument panel. Feel for damp spots and look for water stains. By far, the most reliable method is to check its history. Use a vehicle history company to find out if the car has been in any deep water. You can find detailed advice on how to avoid flood-damaged vehicles online.
When in doubt, keep in mind the adage, "If a deal on a used car is too good to be true, it probably spent a week submerged in water."
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Andrew Clark